Chinese property giant Evergrande under 'tremendous pressure' eNCA
China Evergrande has tried to sell off assets to meet help pay its debts, including its Hong Kong headquartersEmbattled Chinese property giant Evergrande on Tuesday conceded it is under"tremendous pressure", a day after insisting it will avoid a bankruptcy that many fear could have a huge impact on the world’s number-two economy.
On Monday anxious investors protested at the Shenzhen headquarters of the sprawling conglomerate, as Evergrande said it is facing"unprecedented difficulties" but denied rumours that it is about to go under. Shares in the firm fell nine percent Tuesday, and are down almost 80 percent since the start of the year.
"Evergrande’s collapse would be the biggest test that China’s financial system has faced in years," said Mark Williams, chief Asia economist at Capital economics. The pictures of angry investors outside the firm's Shenzhen HQ could also cause alarm in Beijing, where leaders are keen to keep a lid on any form of social unrest.Evergrande has already sold stakes in some of its wide-ranging assets and offered steep discounts to offload apartments, but still reported a 29 percent slide in profit for the first half of the year.
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